Gold, silver and platinum soared to new record highs early Wednesday on haven demand and speculation of further U.S. interest rate cuts, with the yellow metal topping $4500 at one point in early trading.
Prices also advanced as the dollar continued to weaken, heading for its biggest annual decline since 2017. The dollar’s softness, making it more affordable for holders of other currencies to buy gold.
February gold futures rose 0.8% Tuesday to settle at $4,505.70 an ounce on Comex, after the most-active contract advanced 2.7% so far this week. Bullion is up 5.9% in December after gaining 6.5% in November and increasing 3.2% in October. It’s up 71% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The February contract is currently up $7.60 (+0.17%) an ounce to $4513.30 and the DG spot price is $4487.50.
March silver futures rose 3.8% Tuesday to settle at $71.14 an ounce on Comex after the most-active contract rallied 5.4% in the first two days of the week. The white metal hit a series of record highs this month on a historic squeeze in the London market. Silver is up 24% this month after increasing 19% in November and rising 3.3% in October. It’s up 143% this year after rising 21% in 2024. The March contract is currently up $0.808 (+1.14%) an ounce to $71.945 and the DG spot price is $72.13.
Both gold and silver are heading for their best annual performances since 1979.
Financial markets will be closed Thursday for the Christmas holiday.
Precious metals also advanced amid increasing tensions between the U.S. and Venezuela. Gold is a traditional hedge against geopolitical and economic uncertainty.
Separately, bets increased that the U.S. will cut interest rates at least twice in 2026. The Federal Reserve closely watches both inflation and labor market data when setting monetary policy. The Fed cut interest rates for a third consecutive time earlier this month to 3.50% to 3.75% and maintained its outlook for just one interest rate cut in 2026. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts last year.
About 87% of investors are betting that the Fed will keep interest rates unchanged at the next policy meeting at the end of January, according to figures tracked by the CME FedWatch Tool. About 13% expect another 25 basis point cut.
In economic news Wednesday, the U.S. economy outperformed expectations, growing at the fastest pace in years with a 4.3% GDP gain in the third quarter.
Spot palladium gained 7% Tuesday to $1,880.00 an ounce and is up 9.1% so far this week. Palladium is up 30% this month after adding 0.5% in November and rising 14% in October. Palladium is up 102% this year after dropping 17% in 2024. Currently, the DG spot price is down $64.40 an ounce to $1771.50.
Spot platinum increased 8.8% Tuesday to $2,266.10 an ounce after rallying 14% so far this week. It’s up 37% in December after climbing 4.7% in November and rising 1% in October. Platinum is up 148% in 2025 after losing 8.4% in 2024. The DG spot price is currently up $32.40 an ounce to $2307.80.
Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.